THE ever accelerating rate of technology adoption has seen private equity and venture capital (PEVC) deals rising, especially to fund startups.
Assets under management reached US$57bil (RM253bil) as of September 2021, up from just US$17bil (RM57.75bil) a decade ago.
The best opportunities this year in PEVC are in Asean and it is the highest among all emerging markets.
Digitalisation of existing businesses in recent years has led to robust investor interest. There is a strong push in early stage investments by investors in the region, says the “Preqin Territory Guide Asean: 2022” report.
Last year, VC deal activity reached US$20bil (RM80.12bil) in Asean and the trend continues.
The aggregate deal value for Asean in 2021 was 35% higher than the 2019 and 2020 levels combined, and 85% higher than the last peak of US$11bil (RM49.02bil) in 2018, the report says.
Singapore and Indonesia accounted for most of the VC deals last year, representing 46% and 37% of the aggregate deal value in Asean, respectively.
Countries such as the Philippines and Vietnam have displayed the fastest growth, both growing at 6.9 times in 2021 in comparison to their past five-year averages, it adds.
Information technology as a sector continued to dominate the VC deals made in Asean, totalling 379 deals with an aggregate deal value of US$6.7bil (RM29.86bil) in 2021.